Salesforce.com 2011 Annual Report Download - page 25

Additionally, we may fail to meet or exceed the expectations of securities analysts and investors, and the
market price of our common stock could decline. If one or more of the securities analysts who cover us change
their recommendation regarding our stock adversely, the market price of our common stock could decline.
Moreover, our stock price may be based on expectations, estimates or forecasts of our future performance that
may be unrealistic or that may not be met. Further, our stock price may be affected by financial media, including
television, radio and press reports and blogs.
Weakened global economic conditions may adversely affect our industry, business and results of
operations.
Our overall performance depends in part on worldwide economic conditions. The United States and other
key international economies have experienced in the past a downturn in which economic activity was impacted
by falling demand for a variety of goods and services, restricted credit, poor liquidity, reduced corporate
profitability, volatility in credit, equity and foreign exchange markets, bankruptcies and overall uncertainty with
respect to the economy. These conditions affect the rate of information technology spending and could adversely
affect our customers’ ability or willingness to purchase our enterprise cloud computing services, delay
prospective customers’ purchasing decisions, reduce the value or duration of their subscription contracts, or
affect renewal rates, all of which could adversely affect our operating results.
As we acquire companies or technologies, they could prove difficult to integrate, disrupt our business,
dilute stockholder value and adversely affect our operating results and the value of your investment.
As part of our business strategy, we periodically make investments in, or acquisitions of, complementary
businesses, joint ventures, services and technologies, and we expect that we will continue to make such
investments and acquisitions in the future. Acquisitions and investments involve numerous risks, including:
• the potential failure to achieve the expected benefits of the combination or acquisition;
• difficulties in and the cost of integrating operations, technologies, services and personnel;
• diversion of financial and managerial resources from existing operations;
• risk of entering new markets in which we have little or no experience or where competitors may have
stronger market positions;
• potential write-offs of acquired assets or investments;
• potential loss of key employees;
• inability to generate sufficient revenue to offset acquisition or investment costs;
• the inability to maintain relationships with customers and partners of the acquired business;
• the difficulty of incorporating acquired technology and rights into our products and services and of
maintaining quality standards consistent with our brand;
• potential unknown liabilities associated with the acquired businesses;
• unanticipated expenses related to acquired technology and its integration into existing technology;
• negative impact to our results of operations because of the depreciation and amortization of amounts
related to acquired intangible assets, fixed assets and deferred compensation, and the loss of acquired
deferred revenue;
• delays in customer purchases due to uncertainty related to any acquisition;
• the need to implement controls, procedures and policies appropriate for a public company at companies
that prior to the acquisition lacked such controls, procedures and policies; and
• challenges caused by distance, language and cultural differences.
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